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In an interview with AFP, the US Treasury Secretary also gave a taste of the spring meetings of the IMF and the World Bank next week. Janet Yellen, who has been advocating for modernization for months, particularly shines a spotlight on funds that could be freed up. The reform of the World Bank should bring an additional 50 billion dollars over 10 years.
Fifty billion dollars over ten years is not nothing: such an amount would represent, underlines Janet Yellen “ a 20% increase in the sustainable lending level of the International Bank for Reconstruction and Development (IBRD) , a subsidiary of the World Bank. The US Treasury Secretary, however, does not specify by what mechanism the Washington institution will extend its financial capacity. In recent months, the idea of a possible capital increase and work on instruments to mobilize more private funds have been mentioned.
Dusting
Beyond the amounts, the World Bank should begin to dust off its mission. Must be added to this, says Janet Yellen, who has been advocating for this for months already: “ Building resilience ” facing ” climate change “, to ” pandemics » and to « Conflicts “. The operational model of the Bank, which will celebrate its 80th anniversary next year, should also be updated. This includes ” integrating global challenges into diagnostic tools and country partnership strategies ».
Reform process
These spring meetings should be only the beginning of a process of reforms launched in October 2023. With the departure of its president, David Malpass, by the end of June, the Biden administration hopes to accelerate. Appointed during the mandate of Donald Trump, he has often been criticized for not taking enough account of climate change.
Regarding the United States, the country’s economy should continue to grow despite the crisis in the banking sector, according to Janet Yellen, who anticipates a drop in inflation despite the crisis in the banking sector which has heightened fears of recession in the months coming. ” I continue to expect the U.S. economy to grow, the job market to remain strong, and inflation to come down. “Said Joe Biden’s Minister of Economy and Finance.
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